Summary of Working Paper No. 138-1999

IV.3.3, Organisational Forms of Shipowner Liability Insurance for The Northern Sea Route with Specific Reference to the Perspective of P&I Clubs in Russia

By Valery A. Musin, Musin and Partners, St.Petersburg, Russia.

The paper deals with organisational forms of insurance coverage for shipowner's liability when using Northern Sea Route. Russian civil and maritime law permit to arrange such a coverage within organisational forms which are well-known in the international marine insurance market, such as P&I clubs, and to borrow experience already gained by them.

Upon the basis of relevant norms of Russian civil and maritime law and with due consideration of practice of western P&I clubs the author describes possible organisational structure of Russian P&I clubs, indicates the financial basis of their activities, i.e. different kinds of contributions, with specific reference to factors influencing their rates, and the scope of risks covered.

The author also notes the sphere of possible cooperation between Russian P&I clubs and the International Groups of P&I clubs, especially concerning reinsurance protection.